Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast
Episode #147 - From Customer to Owner: The Journey into Business Acquisition and Ownership
Release Date: October 15, 2024
Host: John Wilson
Guest: Rory Tyre

Introduction

In Episode #147 of "Owned and Operated," hosts John Wilson and Jack Carr delve into the intricate journey of business acquisition and ownership with their special guest, Rory Tyre. Rory shares his transformative experience transitioning from a customer to the owner of an independent garden center in Greenville, South Carolina. This episode delivers actionable insights for aspiring entrepreneurs in the home service industry, emphasizing the nuances of acquiring and scaling a business outside one’s primary field of expertise.

Rory’s Background and Acquisition Journey

Rory Tyre, the guest of the day, is relatively new to business ownership, having acquired an independent garden center in May 2024. He recounts his entry into entrepreneurship with passion, stating:

"I'm passionate about entrepreneurship through acquisition because so far it has been like a huge net positive for me."
— Rory Tyre [00:00]

Despite lacking prior experience in the nursery industry, Rory’s determination led him to approach the former owner directly, bypassing traditional broker routes. This approach allowed him to engage in meaningful conversations that ultimately culminated in the acquisition of the business.

"I just laid it out. I was like, well, I'm looking for a business owner that wants to retire because I like to own a business..."
— Rory Tyre [01:17]

Overcoming Barriers in Business Acquisition

Rory emphasizes the challenges faced during the acquisition process, particularly dealing with brokers who often have stringent requirements. Initially, Rory encountered resistance due to his lack of industry experience:

"As soon as they heard that I didn't have any experience, they were just like, nope, I don't want to talk to you anymore."
— Rory Tyre [00:00]

To navigate these obstacles, Rory leveraged his background in consulting and coaching to build trust with business owners. By asking insightful questions and demonstrating a genuine understanding of business operations, he was able to position himself as a credible and serious buyer.

"If you can share something that you have learned about the industry... you're clearly building on some knowledge base."
— Rory Tyre [09:43]

Understanding the Nursery and Garden Center Industry

Rory provides a clear distinction between a nursery and a garden center, highlighting his business model:

"We are only a retail operation. So we buy and resell, buy it wholesale, sell it retail."
— Rory Tyre [14:44]

His garden center caters primarily to mid to high-end retail customers who view plants as a hobby. Unlike many nurseries that focus on growing specific plants seasonally, Rory’s business maintains a broader inventory throughout the year, emphasizing variety and quality to differentiate from big-box competitors like Lowe's or Home Depot.

Marketing and Operational Strategies

Transitioning into ownership, Rory identified key areas for improvement, particularly in marketing and inventory management. With the implementation of a new point-of-sale and inventory system in January, he gained access to valuable data that informed his purchasing decisions, moving from an intuition-based approach to a more data-driven strategy.

"We don't need to have like more tools. We don't need to bring it back. The brand is not known locally for."
— Rory Tyre [22:06]

Rory launched several marketing initiatives, including an email newsletter, a membership program dubbed "SP Club," and local brand partnerships. These efforts aim to enhance customer engagement and increase foot traffic by hosting family-friendly events and leveraging digital communication channels.

"Within a week I think I had like 100 people sign up."
— Rory Tyre [34:35]

Seasonality and Revenue Streams

The nursery business exhibits significant seasonality, accounting for approximately 70% of annual revenue between March and July, with additional spikes in summer and fall. Rory highlighted the importance of diversifying revenue streams to mitigate the traditionally slow period from November to March.

"I think it's like 70% of our revenue comes in between, like, the end of March and Independence Day."
— Rory Tyre [22:38]

To address this, Rory expanded into landscape design and installation services, aiming to provide more comprehensive offerings that cater to both retail and B2B customers. This diversification not only increases revenue potential but also enhances customer loyalty by offering a complete suite of services.

Future Plans and Growth Strategies

Looking ahead, Rory outlines his vision for scaling the business. In the short term, he plans to refine pricing strategies, implement trade variable pricing, and enhance in-store signage to encourage higher sales volumes. Long-term goals include transforming the garden center into an experiential retail destination, complete with events, classes, and improved customer flow through property redevelopment.

"I'd like to pay down my loans... and eventually, someday, what really should happen is the Building should be raised and we should rebuild on a different part of the property..."
— Rory Tyre [24:53]

Additionally, Rory is committed to future-proofing the business by documenting processes, standardizing roles, and preparing for the eventual retirement of key team members.

Notable Quotes

• Rory Tyre [00:00]: "I'm passionate about entrepreneurship through acquisition because so far it has been like a huge net positive for me."

• Rory Tyre [01:17]: "I'm looking for a business owner that wants to retire because I like to own a business."

• Rory Tyre [09:43]: "If you can share something that you have learned about the industry... you're clearly building on some knowledge base."

• Rory Tyre [22:38]: "I think it's like 70% of our revenue comes in between, like, the end of March and Independence Day."

• Rory Tyre [24:53]: "I'd like to pay down my loans... and eventually, someday, what really should happen is the Building should be raised and we should rebuild on a different part of the property..."

Conclusion

Rory Tyre’s journey from a full-time professional to a business owner in the garden center industry underscores the importance of perseverance, strategic thinking, and adaptability in entrepreneurship. By leveraging his consulting experience, embracing data-driven operations, and implementing innovative marketing strategies, Rory has positioned his business for sustainable growth. His insights offer valuable lessons for anyone looking to acquire and scale a business, particularly within the home services sector.

For more information and to follow Rory’s journey, listeners are encouraged to connect with him on Twitter or LinkedIn, and stay updated through the upcoming revamped website at www.ownedandoperated.com.

Connect with Rory Tyre:

• Twitter: @RoryTyre
• LinkedIn: Rory Tyre
• Email: [Available on LinkedIn]

Visit: www.ownedandoperated.com
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